The latest IRIS Illawarra Real Estate Report revealed Wollongong's median house price jumped 8.7 per cent in 2014, from $460,000 in 2013 to $500,000 in 2014.

The report also shows the number of dwelling approvals across the Illawarra region surged in 2014, fuelled by low interest rates and the proximity to a red-hot Sydney property market.

The number of dwelling approvals across the Illawarra rose 40.2 per cent to 2696, pushing the total value of residential building approvals to $733.2 million.

The growth in Wollongong's median house price was driven by the value of sales in the north of the local government area.

The median house price of houses from Russell Vale to Fairy Meadow jumped 15.8 per cent to $550,000, while from Austinmer to Thirroul median values leapt 13.9 per cent to $820,000.

Wollongong's growth could have been higher still if it wasn't for the slight decline in the median house price in the western suburbs.

IRIS executive director Simon Pomfret said Wollongong wasn't the only local government area to enjoy a significant rise in median house prices in 2014.

Shellharbour City was up 10.2 per cent to $439,500, the Kiama Municipality jumped 8.4 per cent to $630,000, Shoalhaven City was up 5.9 per cent to $360,000, while the Wingecarribee Shire rose 4.3 per cent to $437,000.

The boom in dwelling approvals may provide some relief for the rental market, but 2014 again proved a tough year for those who rent with the median rental price for a house the area between Helensburgh and Gerringong growing to $450 a week, up 7.9 per cent in 12 months. The median rent for flats, units and townhouses in the same area increased 2.9 per cent to $350 per week.

At the same time, the number of properties advertised for rent fell.

While 2014 will be remembered as a boom year for residential property, IRIS reports the value of non-residential building approvals suffered a 39.2 per cent contraction in 2014, down to $317 million.